The Effects of Japanese Competition on the American Automobile Industry

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Abstract

Within the paper I take quick overview of the world
automotive industry with a look at the production break
down by continent. A brief look at the production
levels of the United States and Japan, along with the on
going trade deficit follows, with a mention of the
employment levels that are supplied through the
industry. From that juncture I review the history of
the Japanese auto industry. To completely understand
the power and size of Japan's automotive corporations,
it is imperative to understand the relationships formed
and the steps taken to get them to top of the business.
Following this history, I mention the Big Three's
response to the Japanese. The closing of the quality
gap, the debate on protectionism, and the attempted
penetration into Japan's domestic market are all
discussed.
MY conclusions reveal that the United States auto
industry is in a much better state than people believe.
The quality of their products has improved, production
techniques are becoming more •lean,• and their prices
are lower than comparable Japanese models. On top of
all that, Japan has recently announced a lowering of
their import ceiling into America by 650,000 units. No,
the automotive industry is not in dire straights, as
everyone believes.